Hildegarde Naughton (Galway West, Fine Gael) | Oireachtas source

I thank the Deputies for contributing to this debate. I fully understand and appreciate the level of concern raised by all Deputies regarding connectivity to our regions, the pressure that those in the aviation sector are under and the impact on all of those who have lost their jobs. I can assure all of those involved in the sector that the Government is fully committed to helping the sector get back on its feet. There will be no cliff edge in the horizontal supports that have been available from the start of the pandemic to this industry. The Government will continue to monitor and review the direct supports to the airports and any further supports that may be considered necessary, as we have acknowledged in the economic recovery plan. I recognise also the importance of providing clarity on the extent and duration of the supports beyond 2021. In this context, the Government will continue to monitor and consider what further supports may be needed to help all regional airports, including Shannon and Cork, as part of the upcoming Estimates process.

A recent report from the Central Bank on Covid-19 and the public finances in Ireland outlined that the fiscal support package introduced in Ireland was large in a euro area context, with the increase in primary Government spending in Ireland the second highest in the euro area in the first three quarters of last year. The report found that the fiscal measures introduced have mitigated the impact of the pandemic on households, firms and the broader economy. This supports the Government’s policy of providing horizontal financial supports with a view to mitigating the impact of the pandemic on the broader economy. The Government is confident that this strategy will facilitate a speedy recovery of all sectors, including aviation, as soon as restrictions are lifted. As I mentioned earlier, the programme for Government acknowledges the value of aviation in supporting economic development, international connectivity and tourism via our airports. Getting international travel back up and running is vital for the continued economic well-being of this country and will continue to be a priority for me and this Government.

I hear what Deputies have said in regard to antigen testing. As I said in my opening statement, I and the Minister, Deputy Eamon Ryan, will continue to engage at every level across government to ensure that all options in regard to testing are considered which strike the right balance between protecting public health and protecting our economy. We will continue to be guided by the Department of Health and NPHET in regard to Covid-19 testing and how it might be used in settings, including in regard to international travel.

I assure Deputies that the Government is committed to supporting the regions and regional connectivity, and that is why we have moved quickly to seek to reinstate these services lost to Donegal and Kerry, about which I share the concerns of Deputies, as well as committing to renewing the PSO services on these routes under a new contract for up to a further four years. The funding that has been made available to these airports in 2021 is a clear indication of the importance the Government attaches to airports being well-positioned to weather the current crisis for the recovery and growth into the future. It is worth noting that the capital funding of €900,000 to Donegal Airport, €2.2 million to Knock Airport and €1.7 million to Kerry Airport, which I announced on 19 April under the regional airports programme, represented funding of 100% of all eligible projects submitted by airports this year. In addition, I have asked airports to give further consideration to projects with a sustainability focus, which will help expedite airports’ efforts to reduce emissions in line with the goal to move towards carbon neutrality. These additional projects submitted are currently being evaluated by my Department.

I am fully aware of the devastating impact of Covid-19 on Shannon Airport, like all airports in Ireland and around the world, and the importance to the mid-west of having strategic routes from Shannon Airport to London Heathrow, a European hub airport and the US. Prior to the pandemic, Shannon Group was delivering on its commercial mandate, improving profitability and recording strong growth in its commercial property company. While the impact of Covid-19 left Shannon Group in a very vulnerable position, the general Covid-19-related supports put in place by the Government and the specific Government supports targeted at Shannon Airport, which totalled some €30 million in 2020 and 2021, should serve to secure the position of the group and aid its recovery.

In a positive development, I can advise Deputies that Ryanair resumed scheduled air services at Shannon Airport on 1 June, and flights operating include those to the UK, Poland, Lithuania and Spain. Shannon Airport has also advised me that Ryanair services from the airport will increase from July. Regarding the restoration of other routes and the introduction of new air services, I understand the Shannon to London Heathrow route operated by Aer Lingus is expected to be back in September. I also understand Aer Lingus has indicated its intent to come back on transatlantic routes and that Shannon Airport is working hard to get its transatlantic routes back.

Regarding the appointment of a new chair to the Shannon Group, a selection process is under way by the Public Appointments Service, which is expected to bring forward a shortlist of suitable candidates to the Minister, Deputy Eamon Ryan, for his consideration shortly, and the appointment will be made as soon as possible thereafter.

The programme for Government commitment seeks to ensure that local development plans are developed to stimulate economic activity for those areas that were expecting economic development arising from new fossil fuel infrastructure and, as part of this, consider the potential of the Shannon Estuary in terms of regional economic development across transport and logistics, manufacturing, renewable energy and tourism, and develop a strategy to achieve this potential with support from the Exchequer. The Tánaiste will make an announcement on this programme for government commitment to establish a Shannon Estuary task force over the coming weeks.

I acknowledge that the anticipated closure of the airport in Cork from 12 September to 22 November this year will be highly disruptive for many in the Cork region. However, taking a range of factors into consideration, Cork Airport decided that the optimal approach for completing this project would be to close the airport for ten weeks, rather than risk restricting works to night-time hours only, which would push out the project’s delivery timescale to nine months. The airport has engaged extensively with airline customers and stakeholders on this issue, and the vast majority of those stakeholders were in support of the airport’s approach. Delivering the runway project over the shorter time period is safer in both construction and aeronautical terms, will have the lowest impact on passengers and airlines, and is the most cost-effective option when compared with the alternative night-time closure option. The runway upgrade is a complex and large project that also involves a full renewal of all the airside electrical systems. Given the costs involved, the project falls within the scope of the public spending code and, given the detailed procurement process involved for an infrastructure project of this scale and the requirements under the public spending code, it would not be feasible to bring this project forward any earlier than is currently planned.

While I know this sector has greatly suffered and is continuing to be impacted by Covid-19, I am optimistic that the aviation sector can and will bounce back, and will help to drive Ireland's economic recovery and facilitate a return to growth as restrictions are gradually eased in the coming weeks.

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